International Business Machines (NYSE:IBM) Shares Up 2.7% on Analyst Upgrade

Shares of International Business Machines Corporation (NYSE:IBM) rose 2.7% during mid-day trading on Thursday after Morgan Stanley raised their price target on the stock from $190.00 to $238.00. Morgan Stanley currently has an equal weight rating on the stock. International Business Machines traded as high as $234.14 and last traded at $234.0440. 5,585,308 shares traded hands during mid-day trading, a decline of 25% from the average session volume of 7,474,910 shares. The stock had previously closed at $227.88.

Several other research analysts have also weighed in on the company. Evercore lowered their price objective on International Business Machines from $310.00 to $250.00 and set an “outperform” rating for the company in a research report on Thursday, July 16th. Argus dropped their price objective on International Business Machines from $360.00 to $280.00 and set a “buy” rating on the stock in a research note on Thursday, July 16th. JPMorgan Chase & Co. cut their target price on International Business Machines from $291.00 to $250.00 and set an “overweight” rating on the stock in a research report on Friday, July 17th. The Goldman Sachs Group set a $270.00 target price on International Business Machines and gave the stock a “buy” rating in a research note on Thursday, July 23rd. Finally, Piper Sandler raised International Business Machines to an “overweight” rating in a research note on Tuesday, June 23rd. Nineteen analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, International Business Machines presently has a consensus rating of “Moderate Buy” and a consensus price target of $254.96.

Insider Activity

In related news, SVP Robert Thomas sold 25,000 shares of the stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the transaction, the senior vice president directly owned 47,800 shares of the company’s stock, valued at $11,009,296. This represents a 34.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.27% of the stock is owned by insiders.

Trending Headlines about International Business Machines

Here are the key news stories impacting International Business Machines this week:

• Positive Sentiment: Bank of America expects IBM to modestly exceed third-quarter earnings expectations while maintaining its 2026 outlook. The bank reiterated its Buy rating and $280 price target, citing higher-margin software growth, improving profitability and strong free cash flow. Bank of America expects IBM third-quarter beat
• Positive Sentiment: Morgan Stanley raised its IBM price target from $190 to $238, reflecting a more favorable valuation outlook, although it retained an Equal Weight rating and sees limited near-term upside. Morgan Stanley raises IBM price target
• Positive Sentiment: IBM and Siemens are collaborating on IBM’s nanostack transistor architecture. Siemens will contribute electronic-design automation, simulation and manufacturing expertise, potentially accelerating IBM’s semiconductor innovation and future commercialization prospects. IBM and Siemens nanostack collaboration
• Positive Sentiment: Royal Bank of Canada reaffirmed its Outperform rating, adding to the supportive analyst commentary ahead of earnings. RBC reaffirms IBM Outperform rating
• Neutral Sentiment: IBM’s research found that AI incidents are increasingly reaching executive and boardroom levels, highlighting demand for governance, security and consulting services. However, the limited readiness of many enterprises also underscores adoption and execution risks. IBM AI governance study
• Negative Sentiment: Investors remain focused on whether IBM’s upcoming results can justify its premium valuation amid competition, margin pressure and uncertain AI and hybrid-cloud growth.
• Negative Sentiment: IBM reported $7.77 billion in first-half operating cash flow, but much of the improvement came from financing-receivable movements rather than core business growth, raising questions about cash-flow sustainability.

Hedge Funds Weigh In On International Business Machines

Institutional investors have recently made changes to their positions in the stock. Portus Wealth Advisors LLC bought a new position in shares of International Business Machines during the 1st quarter valued at approximately $26,000. Harborfront Financial Group LLC purchased a new position in shares of International Business Machines in the second quarter valued at $27,000. Hara Capital LLC bought a new stake in International Business Machines in the second quarter worth $28,000. Bare Financial Services Inc increased its position in International Business Machines by 114.6% in the second quarter. Bare Financial Services Inc now owns 103 shares of the technology company’s stock worth $29,000 after purchasing an additional 55 shares during the last quarter. Finally, Caitlin John LLC purchased a new stake in International Business Machines during the second quarter valued at $35,000. Institutional investors and hedge funds own 58.96% of the company’s stock.

International Business Machines Trading Up 2.7%

The company has a quick ratio of 0.74, a current ratio of 0.79 and a debt-to-equity ratio of 1.63. The stock’s 50 day moving average is $232.07 and its 200-day moving average is $243.68. The company has a market cap of $220.50 billion, a PE ratio of 20.77, a P/E/G ratio of 2.20 and a beta of 0.73.

International Business Machines (NYSE:IBM) last issued its quarterly earnings data on Wednesday, July 22nd. The technology company reported $2.93 EPS for the quarter, hitting analysts’ consensus estimates of $2.93. International Business Machines had a net margin of 15.52% and a return on equity of 35.65%. The business had revenue of $17.16 billion during the quarter, compared to analysts’ expectations of $17.46 billion. During the same period last year, the company posted $2.80 EPS. The business’s revenue was up 1.1% on a year-over-year basis. As a group, sell-side analysts anticipate that International Business Machines Corporation will post 12.33 EPS for the current year.

International Business Machines Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 10th. Investors of record on Monday, August 10th were issued a $1.69 dividend. The ex-dividend date of this dividend was Monday, August 10th. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.9%. International Business Machines’s dividend payout ratio (DPR) is presently 59.98%.

International Business Machines Company Profile

International Business Machines Corporation (NYSE:IBM), commonly known as IBM, is a global technology company that provides hybrid cloud, artificial intelligence, software, consulting and infrastructure solutions. Its offerings help businesses and government organizations manage data, modernize applications, automate processes and improve cybersecurity.

IBM’s portfolio includes the Red Hat hybrid cloud platform, the watsonx suite of artificial intelligence and data tools, consulting services, and enterprise software for areas such as automation, application management, security and asset management.